AZ HB2680

Amends Arizona Revised Statutes sections 32-1129, 32-1129.01, 32-1129.02, and 32-1129.05, and adds new section 32-1129.07 relating to contractor payment and retention requirements.

Establishes definitions for "retention" (funds withheld to ensure proper contract performance), "substantial completion," and "final completion" of construction work.

Requires owners to release retention within seven days after billing approval for substantial completion, with limits on retention amounts to 150% of direct costs for deficiencies (or 2.5% if bonded).

Expands payment timeframes and procedures: owners have 14 days to approve/certify billings (or they are deemed approved), and must pay within seven days; provides detailed grounds for withholding payments and requires written statements explaining withholding reasons.

Adds new section 32-1129.07 requiring specific notice to owner-occupants regarding Arizona prompt pay act requirements when construction contracts are for single-family dwellings; applies to contracts with plans distributed or contracts entered on or after January 1, 2011.